SAP confirmed 2020 outlook - Bullish but risky trend in place

2Q total revenue edged up 1.2% to 6.74 billion euros including 2.04 billion of cloud revenue, up 20.3%.

Charts (5)

SAP, a German software firm, reported that 2Q net income grew to 1.38 billion euros from 1.30 billion euros in the prior-year period, and non-IFRS operating profit was up 7.7% on year to 1.96 billion euros. 2Q total revenue edged up 1.2% to 6.74 billion euros including 2.04 billion of cloud revenue, up 20.3%. The Company reconfirmed its 2020 outlook. Also, the Company announced plans to take its data-analysis unit Qualtrics public through an IPO.

From a technical point of view, the stock price is trading close to its historical high reached last week, before Friday opening sharp correction. Yet, prices remain supported by their upward crossing 20 and 50-day moving averages. However, as the daily RSI is posting a bearish divergence, the risk of a downturn is relatively high thus a tight invalidation level around the 20-day moving average is warranted. As a consequence, traders may consider long position above 133.00 with a target at 150: 1.618 Fibonacci projection of March to May up leg. Alternatively, a downside breakout of 133 would trigger a bearish acceleration towards the former resistance area at 127.00 now acting as a support.

Source: GAIN Capital, TradingView

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.